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Air new zealand disappointed with commerce commission decision

Air New Zealand today announced that it would be closely examining the New Zealand Commerce Commission’s decision…

Air New Zealand today announced that it would be closely examining the New Zealand Commerce Commission’s decision before deciding whether to file an appeal with the High Court.

Air New Zealand’s Chief Executive and Managing Director, Ralph Norris, said that Air New Zealand will closely review the Commerce Commission’s decision to determine the most appropriate course of action for Air New Zealand. The Company will then have discussions with Qantas before confirming its course of action.

The NZCC determination requires careful consideration before we are in a position to make an informed decision on whether to proceed with appeals in both jurisdictions, Mr Norris said.

Mr Norris said he was extremely disappointed that the level of information Air New Zealand had provided the NZCC and the weight of fact and evidence from internationally renowned economists and aviation industry experts had counted for little.

It is particularly disappointing that competition regulators continue to stare into the rear vision mirror and ignore the significant structural challenges facing airlines all around the world. The alliance offered the opportunity to look into the future and provide a platform for sustainable growth as we compete against all-comers in an uneven international environment.

A consequence of today’s decision by the NZCC is that the conditional agreement between Virgin Blue and Air New Zealand for terminal access and ground handling facilities is now null and void, as the agreement was conditional upon the NZCC approving the alliance.

Mr Norris said that despite the NZCC’s decision and regardless of any appeal, Air New Zealand would have no option but to continue to work very hard to retain its position as the leading airline in the South Pacific, but the job of remaining competitive has just become much harder.

Mr Norris said that a key to the airline remaining competitive in the short-term was driving cost out of the business and focusing on growth.

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Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales. She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.